Minister sees shipbuilding as bright spot

Commerce Minister Faruk Khan, third from left, visits Western Marine's shipyard off the Karnaphuli river in Chittagong yesterday.Photo: STARStaff Correspondent, Ctg

Commerce Minister Faruk Khan said yesterday the shipbuilding sector emerged as a new bright spot for Bangladesh with broad prospects for growth.

Describing the government as business-friendly, the minister assured businessmen of "all-out support" by making new policy and bringing changes to the law to accelerate development of the sector, which promises to be Bangladesh's "surest path" to a mid-income country status.

Khan was speaking as the chief guest at a ceremony during a goodwill visit by the Parliamentary Friendship Group of German Bundestag to Western Marine Shipyard Limited on the other bank of the river Karnaphuli at Shikalbaha in Patiya upazila.

Acting Head of German Delegation Dr Norman Peach, Chittagong City Corporation (CCC) Mayor ABM Mohiuddin Chowdhury, The Daily Star Editor Mahfuz Anam, German Ambassador Frank Meyke were the special guests at the ceremony. Western Marine Chairman Md Saiful Islam presided over the function.

“Shipbuilding is in the blood of local people as we have a rich history in this sector. People here in Chittagong had built sailing ships 500 to 600 years ago,” said the minister in his speech.

All it requires is modern technology and skilled manpower to meet increasing demand for ocean-going vessels, Khan said.

The minister hoped the sector would help boost bilateral trade between Bangladesh and European countries.

There exists a friendly environment for trade, commerce and investment as Bangladesh has started a "new journey" to establish a "secular, democratic and stable" country, he said.

The minister reiterated the government's commitment, as made in its election manifesto, to support shipbuilding as a priority sector. “We have a business-friendly policy and believe in the free-market economy. We will do our best to promote the sector," Khan pledged.

In a presentation on trade and investment opportunities in the shipbuilding sector, Western Marine Managing Director Md Sakhawat Hossain said the contributions by the industry would take up 3-4 percent of GDP by 2015.

If Bangladesh can grab 1 percent of the $400 billion global market of small vessels, the amount will rise to $4 billion, he said.

According to Western Marine Chairman Md Saiful Islam, Bangladesh has bagged $500 million export orders for ships to deliver by 2010.

"Earnings will rise to $2 billion if this momentum is maintained," he said.

Western Marine has received orders for 12 ocean-going ships from a Dutch company.

Dr Norman Peach, acting head of the German Delegation, hoped that the industry would help the economy in the region.

Pointing to wide opportunities for bilateral trade and commerce between Bangladesh and Germany, Peach said the sector in Bangladesh would also open a new trade and investment window for German enterprises.

German Ambassador Frank Meyek referred to a stable political situation and reform measures taken over the last two years and said the reforms would help build efficiency with reduced 'turnout' time for vessels, which has led to a tremendous positive effect for Bangladesh to boost international trade.

The Daily Star Publisher and Editor Mahfuz Anam said the emerging shipbuilding industry is important not only for earning revenue but also for technology transfer.

Anam hoped that the development of the shipbuilding sector could help the country rebuild its image in the international arena with a new reputation as a shipbuilding nation. The media could play a vital role in promote the sector, he said.

CCC Mayor Mohiuddin Chowdhury has said it is a matter of pride that Bangladesh is now able to export ocean-going vessels to European countries.